Describe various initiatives to diversify markets for bitumen and eliminate the bitumen bubbles
Paper instructions:
The bitumen bubble is: “the discounted price Alberta was getting for its oilsands crude compared with the North American benchmark West Texas Intermediate.”
“Redford’s so-called bitumen bubble is a familiar phenomenon more commonly known as the price differential. Alberta’s sludgy crude requires extra processing. So it sells at a discount to the benchmark West Texas Intermediate price. The situation is aggravated by swelling U.S. production and plugged pipelines. As a result, the differential has widened to $30-$40 a barrel, more than twice the province’s expectation.”
Ways to burst the bitumen bubble:
• Build pipelines
o Enbridge – northern gateway (525,000 bpd)
• Provide access to new markets on the pacific rim.
o Keystone XL
• Get access to more refineries in the states
• Refine the shit in Canada – it can’t be discounted if we make the final product ourselves.
• Reduce Taxes to make up for the discount
o Like the carbon tax (I am sure schoen thinks that this silly carbon tax is just outrageous)
• Find new technology to make the heavy bitumen easier to refine
Another route to take: instead of trying to eliminate the bubble, the government could have done what Norway did (make an oil savings fund when economic times are good worth about 685 billion dollars). Essentially, save for a rainy day (with the metaphorical rainy day being times when the us refineries are saturated in their own oil).
Describe how First Nations assert their treaty rights to control oil sands development
Background -Treaty 8
Protected under the constitution
Intergovernmental agreement
Sharing of Traditional Lands as long as the inherent right of the First Nation group is upheld
Treaty 8 and Resource Conflict
Connection to the elements
Relationships are fostered through cultural identify
• Never relinquished their rights to use land and water on their ancestral traditional land
• The land is tied to their culture, identity, and well-being.
• They have a right to pass their tradition to other generations.
• Treaty rights are not dependent on quantity of land but quality needed to fulfill their cultural and spiritual needs
• They have a right to hunt, fish, and gather
• Feel that provincial and federal governments are neglecting their right to be consulted
• Feel that governments are changing in laws to help foster industrial business relationships
• Feel that rights are infringed upon and were/are not adequately compensated for said infringement
• Private property is confiscated and democratic rights trampled for pipeline expansion
• Credibility of regulatory bodies
• Scientific uncertainty
What they desire:
a. Full protection of the environment.
i. Ecological – Water, land, wildlife habitat, flora
ii. Human Health – impacts of industrial agents on personal health and safety
1. fearful of toxins contaminating drinking water and ?sh from ‘externalities’ of tar sands production
b. Full protection of the ability to exercise aboriginal and treaty rights.
i. Their ability to hunt, trap and ?sh has been severely curtailed
ii. Their ability to gather medicinal plants
iii. Ability to gather for spiritual and cultural events
c. Meaningful participation of First Nations in the management of any pipeline and all benefits arising from it.
i. Basic ground rules for environmental assessment.
ii. Timely consultation
iii. Information is dispensed adequately and communicated
iv. Stewardship/Partnership of economic benefits
What they have done to get their point of view across:
a. Threaten by legal action because oil sands development and expansion opposes treaty rights.
b. Media blitz – local, national, international
i. UN submission of violation of Aboriginal Rights
ii. Celebrity patronage
Chief Dan George something to the effect that, “ we will use the tools of the white man’s ways, his traditions and his laws but we will rule our people by the teachings of mother earth”
Examples of cases in current/previous litigation
• The Fort McKay First Nation is appealing an approval of Brion Energy’s plans for a 50,000-barrel-a-day operation northwest of Fort McMurray. It says the province has violated the constitution by setting up an energy regulator “forbidding” arguments based on aboriginal rights.
• The Mikisew Cree and Frog Lake First Nation are before the courts arguing that Ottawa’s recent amendments to the Fisheries and Navigable Waters Acts run afoul of their rights.
• The Beaver Lake Cree ?fighting both levels of government in a case that seeks to force them to consider the cumulative effects of oilsands development when issuing new permits.
• Joint Review Panel hearings on Shell’s Jackpine Mine expansion citing poor consultation and direct and adverse effects on the First Nations’ ability to continue its treaty and associated aboriginal rights to hunt, fish, trap and gather.
Consultation – According to Alberta Provincial Government
• Aboriginal people are uniquely positioned to inform integrated resource management initiatives such as regional planning and environmental monitoring due to their close connection with the ecosystem.
• The government has a legal duty to consult with First Nations where provincial land management
and resource development decisions may impact their ability to exercise Treaty rights.
• Alberta’s First Nations Consultation Policy helps ensure resource development considers Treaty
• rights. The supporting guidelines add clarity to the consultation process.
• The First Nations Consultation Capacity Investment Program (FNCCIP) provided $5.2 million to support consultation office staff, interim consultants, training and travel.
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